Thinking about the world that we are living in and the rate at which products, services, and, life in general, are evolving can be scary for some people, and we need help from time to time. No one has gone through life without some form of help from someone somewhere and financially we might need a helping hand too.
It can be tricky navigating the world of banking, financing, or even asking a family member or friend to sign as the security on a loan, it is a big responsibility to take on and not many people would be up for it. Going to a lending agent seems overwhelming, the sky-high interest rates, the hidden fees, and costs tucked away in the fine print only to be discovered once you have signed the papers, it is a tough decision.
But you need help.
Thankfully, some firms and businesses understand that life can be a struggle, not all of the time but it has its moments and more often than not when we least expect or can afford it. And with the car deciding to retire before you expected it to it is time for a new one, but I suspect only an elite group of individuals would be able to go out the next day and purchase a new one, so where does that leave you?
You could bide your time with public transport, but those ticket fares soon add up, asking favors for lifts from colleagues which will soon tire out, and then you are back to square one. And this is where looking at loan agents and lenders requires careful research and homework to see which company will accept your application. How much are they willing to lend, and the most important questions are, what will the interest rates on the repayments be, and how much collateral is needed for the agreement to go through.
If you don’t have an asset to put down as collateral in case you default on your home for whatever reason all hope is not lost, you still have options. To get you started take a look at https://www.billigeforbrukslån.no/lån-med-lav-rente/ where you could find a solution to your situation without having it cost an arm and a leg.
Loans and lending firms stipulate age requirements and some form of identification, and if you have these then you are one step closer to breathing easier. You could be shopping for a new car in no time, and not have the added weight on your shoulders that if something happens they could take your home away.
What to look for.
Now that you have decided to go with a lending firm or agent and after a few days of reading you have a handful of options, then comes the difficult part of weighing up all the pros and cons of each and making a choice.
There are a few tips and advice to work with if you are new to the lending process and not sure what to be aware of when wondering who to apply with or which features should be avoided, so let’s take a quick look at some points to keep in mind when shopping for your lending company or agent.
- Credibility. We put this point first because it is important to start on the right foot. You want a lender you can trust, one that has a credible reputation, and that isn’t going to try to earn a few sneaky dollars on the side by adding in extra unknown fees or hidden costs that come out when it is too late.
- Experience. The length the company has been established and trading for can speak volumes about their work ethics and client relationships. Look for a firm that has been in the industry for a substantial amount of time, search up their company name and see what reviews and comments have been made about their service and customer relations. Don’t only look for the easy way out, you get what you pay for and in this case, you want a firm that knows what it is doing.
- Interest. The factor which causes hesitation. Sure you could opt for the lowest rates you can find but these are usually advertised as an average or general value, the final percentage will be determined by several factors including your credit history and the type of loan.
To learn more (and we could always have extra information to hand) take a moment to click here and see not only the more in-depth version of interest rates but how they are calculated, what the process involves, and a general overview of the topic.
- Repayments. Before signing any paperwork speak to the consultant, ask about their flexibility on repayments and any penalties that would be incurred should you miss one month’s payment or opt to pay the full loan amount from a bonus you received at work. Some providers unfortunately do charge a fee for leaving the deal early, essentially, to cover any interest lost that they would have received had you carried on with the loan to full-term.
- Contact ability. Making inquiries or asking questions and waiting for a response will give you a good indication of the type of service you are likely to receive should you go with them. If you are waiting for weeks for a response imagine what it would be like if you had an issue, you want to be able to talk to the agents immediately if not within a day or two.
- Paperwork. It may not seem like something you need to worry about and simply assume that the company will cover all its basis, but it could leave you at a financial loss or in a situation when the time comes to either finalize payments or others. Have all the paperwork sent over to you to look over, your lawyer as well if possible, and be well-versed in the responsibility of each party – what you have to repay and what they have to lend.
Having an unfortunate situation happen that came as a complete surprise can put your personal life on its head, and then on top of that not having the funds to rectify it can make things so much worse. If you have successfully gone through the lending application process and have the funds to put the pieces of your life somewhat together then you will know the freedom and weight off it can bring.
Now that you have bought the new (or second-hand new) vehicle and your life seems on track it is important not to forget about or get slack with your loan repayments. You need to stay on top of things, budget to ensure you make your monthly installment. The last thing you want is to find yourself in a sticky situation again, only this time it’s where lenders are hunting for their money and your name ends up on the black list.
The first thing you should do once you have the finances in your bank is to get organized. Create a planner with all your expenses listed, set reminders on your phone and electronics that alert you when payments are due, and ideally pay all your expenses at the beginning of the month so you know they are taken care of.
Then whatever is left of your salary you could opt to use some for savings or investments of some kind, treat yourself or the family, or simply keep in your account to take care of the day-to-day activities and bills which creep up out of nowhere, am I right?
A final thought.
Taking on a loan is something we may end up finding ourselves having to do in our lives and to understand that it is no small act is vital, it could have life-changing consequences for both the positive and negative end of the spectrum.
Be comfortable, confident, and sure that the lender you use will support and guide you through the lifetime of your loan. It could mean taking another look at it down the road, adjusting interest rates, or perhaps lengthening the loan period.
That being said, and although it is tough to hear when time is not something you have, before simply jumping on the first company that will say yes, take your time. This is too big a sum of money to be caught in a web that ends up being impossible to get out of, read the fine print.